Three Black Cross Weights on Bitcoin Price
The BTC/USD was closed at $35043.5 after placing a high of $35981.0 and a low of $34754.0. Bitcoin came under pressure on Wednesday and lost almost half of its previous daily loss amid the strength in the greenback along with the adverse developments around the corner. Aswath Damodaran, a Professor of Finance at New York University Stern School of Business, has criticized bitcoin and stated that the flagship cryptocurrency had failed miserably to function as a currency. Professor, popularly known as the "Dean of Valuation," asked people why they do not use bitcoin as a mean of payment or use it in transactions. He added that business enthusiasts place this notion that bitcoin was a great currency because they have gained a bunch of money from it; however, it was not a measure of good currency. Damodaran said that a good currency was the one that used to buy coffee, house, and car, and on this count, bitcoin has failed miserably.
Whereas, on Wednesday, a report published by Forbes noted that the New York Digital Investment Group (NYDIG) has partnered with an enterprise payment staple based in Atlanta named NCR to make it easier for banks in the United States to offer Bitcoin trading services. The financial institutions in the United and across the globe have begun to deal in cryptocurrencies despite the longstanding anti-crypto sentiments.
After this deal, the 650 financial institutions will offer buying, selling, and trading bitcoin to more than 24 million account holders. The collaboration details suggested that the trading of bitcoin offered by the NCR's banking and credit union clients will be provided with custody from NYDIG. In simple words, the community banks and credit banks from all parts of the USA will provide crypto trading via mobile apps for their clients.
Meanwhile, the recent filing from SEC suggested that Morgan Stanley has purchased about 28,289 shares of Grayscale Bitcoin Trust for its Europe Opportunity Fund. The mutual fund holds various Europe-based companies and invests at least 80% of its assets in equity securities by European companies. The fund has about $291.61 million assets under management. Morgan Stanley has increased its interest in crypto and has become more active lately due to increased demand from clients.
Recently, the investment bank approved for several funds to begin seeking indirect exposure to bitcoin. One of these funds was the Europe Opportunity Fund, among four other funds named Institutional Fund, Institutional Fund Trust, Insight Fund, and Variable Insurance Fund. According to the filing, each fund might invest up to 25% of its total assets in bitcoin.
Despite various positive developments surrounding the bitcoin space, the strength of the U.S. dollar for the day added a loss in BTC/USD. The U.S. Dollar Index (DXY) that measures the value of the U.S. dollar against the basket of six major currencies, rose for the 4th consecutive session on Wednesday and reached 92.45. The dollar's rising value was driven by better-than-expected U.S. jobs reports and the risk-off market sentiment caused by the increasing fears of the Delta variant of the coronavirus. The strength in the greenback dragged the BTC/USD downwards on Wednesday because they both share a negative correlation.
BTC/USD Intraday Technical Levels
Pivot Point: 35259.5
BTC/USD - Technical Outlook
The BTC/USD pair is trading with a bearish bias at 33,358 level, dropping after testing the strong resistance area of 36,665. The technical side of BTC/USD hasn't changed a lot as it's dropping after completing 23.6% Fibonacci retracement on the daily timeframe. Closing of bearish engulfing and three black crows pattern below 36,665 area is weighting on Bitcoin prices. The 50 periods EMA extends resistance at 33,550 level while the MACD is now holding above 0 levels, demonstrating slight bullish bias among investors. On the higher side, the breakout of 36,665 level can expose Bitcoin price towards 37,650 and 40,930 (38.2% Fibonacci Retracement) level. All the best!
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